Stocks are looking lower on the open today, led by negative corporate news. Drug giant Eli Lilly & Co. cut its earnings forecasts for the fourth quarter and full year, after its sales slipped 3%. Also, KLA-Tencor Inc. said that its profit and revenues will be lower than expected.

In earnings news, Xerox reported a profit of US$105 million, and it plans to cut another 1,600 workers. And, Lucent Technologies Inc. reported its 10th straight loss, amid falling sales.

In economic news, consumer spending in retail stores edged up 0.2% to $25.7 billion in August, after a 0.2% decline in July. In constant dollars, retail sales remained unchanged in August, following a 0.6% decrease in July. Retail sales for the first eight months of 2002 were 6.1% above those reported in the same period of 2001.

Also, the Consumer Price Index for September came in at a 2.3% annual rate. This follows a 2.6% rise in August. The smaller increase in September is explained by the 1.8% fall in energy prices from September 2001 to September 2002; energy prices had remained stable in August. The core rate rose 0.2% month over month to 3.0%. And, the All-items excluding the eight most volatile components, was also up 0.2% to 2.5%.

In Europe, stocks are generally down today on corporate news too. GlaxoSmithKline plc saw its profit flat last quarter. Banks and insurers are weaker too after Germany’s banking firm, HVB Group posted a third-quarter loss. One bright spot is DaimlerChrysler AG, which saw its third-quarter net income triple. Still, the FTSE is down 74 points to 4,044. The CAC 40 has lost 89 points to 3,032. And, the DAX is off by 91 points to 3,065.

Overnight in Asia, stocks finished the day higher, as the yen also gained strength. The Nikkei added 25 points to 8,715. The Hang Seng rose 256 points to 9,805.

In M&A news, Vivendi Universal has entered into negotiations with the Lagardere group to sell it the publishing businesses in Europe and Latin America of Vivendi Universal Publishing. It expects to get about US$1.25 billion for the division.

In earnings news, for the third quarter of 2002, BCE Inc. reported net earnings applicable to common shares of $368 million. Net earnings before non-recurring items were $393 million.

Potash Corporation reported third-quarter diluted net income per share of 28¢, up from 21¢ per share earned in the same quarter a year ago. The greater profitability was primarily due to improving conditions in nitrogen.

NOVA Chemicals reported break-even results before unusual items for the third quarter of 2002. This compares to a loss to common shareholders before unusual items of $19 million in the second quarter of 2002 and a loss to common shareholders before unusual items of $81 million during the third quarter of 2001.

Suncor Energy Inc. reported net earnings for the third quarter of $184 million, up from $73 million in the third quarter of 2001.